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Romanian electricity generator Termoelectrica has launched a Eu125m three year debut Eurobond via Deutsche Bank and JP Morgan, despite a difficult background of market edginess over recent events in Argentina and disappointment over the US rate cut. Pricing is 99.757, which yields 11.35% on the 11.25% coupon, giving a spread of 711bp over the Bobl.

Equity capital markets bankers across Europe are awaiting an announcement from the Polish government naming the winners of the mandate for the sale of 30% of Telekomunikacja Polska (TPSA). The finance minister is expected to give his decision by the end of March on a deal tipped to raise over $1bn. A staggering 11 top tier banks bid for a role on the syndicate. The issue is expected to be the largest equity issue from central Europe this year. "The competition is pretty intense," said one participant. There was a notable absence of analysts in London available for comment this week as they made their way to Poland.

Fears of a full scale US recession took hold this week as the smaller than expected Federal Reserve rate cut sparked panic selling in stock markets worldwide, sending them plummeting as investors sought safe havens. Early in the week, the market was focused on Tuesday's FOMC meeting and there was little trading. Disappointment was in store for many investors, who had hoped for a 75bp rate cut in response to concerns about the US economy, numerous profit warnings and the fall in equities since the start of the year.

Banks are bidding on the financing mandate following Apax Partners' acquisition of Carcraft, the UK's largest second-hand car dealership. The company was put up for sale by its private equity owners for at least £200m. The company was bought by Noel and Darren McKee from their father Frank in 1998. The brothers' £50m buy-out was backed by Royal Bank Development Capital. The company has expanded since then and now has three used car supermarkets in Rochdale, Sheffield and Newport. The £197.5m of senior and mezzanine debt facilities for Eubisco is proceeding well in syndication and is expected to close oversubscribed in the next week. Mandated arrangers on the deal are Deutsche and CSFB.

Globals * Coca-Cola Co

* National Bank of Canada Rating: A1/A/A+

French steel group Usinor launched its debut euro issue on Wednesday, a Eu500m seven year offering via BNP Paribas, JP Morgan and Schroder Salomon Smith Barney. The lead managers reported good flows supported by a strong domestic bid, and demand from Spain and the Benelux. The deal was oversubscribed, offering investors diversification and a fair spread of 120bp over mid-swaps. "We were quite pleased with where we priced the offering," a Usinor spokesperson told EuroWeek. "The proceeds will be used to refinance existing debt that is maturing in the next two years."

UBS Warburg priced Vienna International Airport's Eu66m accelerated bookbuild at a slim discount on Tuesday night, after investors had been shaken by another dismal day for the US equity markets. The deal was nearly twice covered, although Tuesday's 4.8% fall on the Nasdaq composite index and 2.4% drop in the Dow Jones Industrial Average caused some investors in the US to set price sensitivity levels just below the final price. The stock was sold at Eu38.5, offering a discount of 1.2% to yesterday's (Thursday) closing price of Eu38.96.

Arrangers SEB Merchant Banking and Svenska Handelsbanken have underwritten a $1bn credit facility for Vin & Sprit. The facility will finance the company's investment in Jim Beam Brands, Future Brands and Maxxium in support of a new global distribution of Absolut Vodka. V&S and Jim Beam brands will each own 50% of the new company that will distribute Absolut and Jim Beam bourbon as well as other brands. The V&S becomes a fourth partner in Maxxium, a distribution business that will deliver Absolute outside the US. V&S will also take a 10% stake in Jim Beam, with an option to increase the share.

Japanese retail investors snapped up Brazil's Samurai offering last Friday (March 16), enabling the sovereign to increase its six year deal to ¥80bn from an originally expected ¥60bn. The deal, led by Nomura Securities and Kokusai Securities, offered a 4.75% coupon, at the wider end of its 4.6%-4.75% pricing range. "Japanese interest rates are falling dramatically again and retail investors therefore became strongly involved in this deal, even though they do not usually go out further than three years in maturity," said a Nomura official.